Page 33 of Never Again
Carlos gratefully shook his hand. “Thank you for seeing me on such short notice.”
He’d asked Rashad to meet with him immediately, but because he’d had a full day of appointments, they were meeting during Rashad’s lunch hour.
“No problem. Want anything to drink? Or eat—a muffin or a cookie?” Rashad pointed to ice, bottled water, and a platter of muffins and cookies set up on a side table.
“You made those?” Carlos asked.
Another aspect of Rashad’s personality that seemed out of place, he liked to bake. Definitely an interesting character.
“Yeah, it’s a new recipe I tried. Pistachios and chocolate chips in both. They’re not too bad, if I do say so myself.”
“Maybe I’ll take one of each before I leave.”
“Sounds good. Have a seat.” Rashad waved to one of the cushioned chairs and sat down behind the desk. He smiled a white-toothed smile that strikingly contrasted with his dark skin and sparkled like the diamonds in each ear. “I’ve looked into what you asked about.”
“And…?” Carlos wanted to take out a loan against his retirement account. “Can it be done?”
“You’re not able to take out a loan against any of your accounts.”
“I thought that was an option. Why not?” Carlos demanded. He had plenty of money in his portfolio.
Careful and cautious and very frugal, he could afford a nicer and bigger apartment, but he chose a place with low rent and where he could easily get around on foot or by public transportation. That allowed him to put away more money for an uncertain future.
But now he needed some of that money, and Rashad was telling him the opposite of what he’d expected.
“It is an option if your 401K is set up like that, but yours isn’t.”
“Then I’ll just take the money,” Carlos said.
Rashad held up a hand. “Wait a minute now, let’s not get hasty. If you do that, the money you’ve already put in is subject to hefty taxes and penalties, so that’s not a good idea.”
“I’ll deal with it,” Carlos said grimly. The idea of getting hit with taxes was discouraging, but he intended to forge forward nonetheless.
“There’s an alternative, and it’s called a solo 401K. It’s going to cost you a little bit to set up, but nowhere near what you’d have to pay in taxes for simply pulling out the money. Trust me, it’s the better option. You’re limited to borrowing up to fifty thousand dollars. Would that work?”
That wasn’t the full amount that he needed, but if he emptied his savings, it was a good start.
“I can make it work.”
“All right, here are the details.”
Rashad handed him some paperwork and launched into an explanation of how he could use the plan to his advantage. When he finished, he sat back and looked at Carlos. “What do you think?”
“Let’s do it,” Carlos said immediately.
“Great. I know an attorney who can set up the account for you. I’ll send you his information, and let’s see…” Rashad glanced at his iPad screen. “According to my calendar, I have an opening a week from today, at ten. Can you come back at that time so we can sign some paperwork and get the rollover completed?”
“I’ll be here.”
“All right, we’re all set.” Rashad set down the tablet and studied Carlos. “Is everything okay? You’re not in any kind of trouble, are you?”
“No. It’s…a personal problem I’m hoping to resolve very soon.”
Rashad tapped his pen on the desk. “If you need someone to talk to, I’m willing to listen.”
“Thanks. I appreciate it, but I can handle this on my own.”
Rashad nodded and rose from his chair, signaling the end of the meeting. “I’ll see you next week then.”
